Even the third was not solved… Passport in case of ‘4th subsidy’ before the election

From the beginning of the new year, the passport started the 4th disaster subsidy “the period of military fire”. The scope and scale are large enough to discuss disaster subsidies for all the people. As discussions on the fourth subsidy emerged before the third disaster subsidy payment began, some criticize that he was Norim-soo ahead of the April by-election.

According to the Ministry of Strategy and Finance and politics on the 5th, Gyeonggi Gyeonggi Governor Lee Jae-myeong urged the National Assembly and the Ministry of Strategy and Finance to provide universal support through local currency on the evening of the 4th, saying,’It is necessary to provide a disaster support fund of a scale that exceeds the first disaster support fund for all citizens did. Gyeonggi Province sent Governor Lee’s letter containing these details to the Ministry of Strategy and Finance with 300 members of the opposition lawmakers including National Assembly Speaker Park Byung-seok. Gyeonggi-do spokesman Kim Hong-guk explained, “It is not to change this third round, which has already been confirmed, but to pay an additional fourth disaster support fund.”

Prime Minister Jeong Sye-gyun said in an interview with a media on the previous day, “I think the government should step forward if necessary (for the request for the provision of disaster assistance for the entire nation). Regarding concerns about fiscal soundness, he stressed that “the people must live to have fiscal soundness.” In an interview with other media, Nak-yeon Lee, also the leader of the Democratic Party, said, “(3rd disaster subsidy) 9.3 trillion won is not enough.”

In addition to this, other passport figures, such as “I propose to the 2nd National Disaster Compensation Fund in addition to the 3rd Disaster Assistance Package” (Supreme Committee Yang Hyang-ja) and “There is a consensus that there should be a full-scale discussion” (Choi In-ho, senior spokesman for the Democratic Party). Until he started supporting fire.

The reason why the 4th disaster subsidy is being talked about is first of all because the damage to self-employed people due to Corona 19 is increasing. According to’Korea Credit Data’, which manages payment information for 660,000 small business establishments nationwide, sales of small business stores nationwide fell 56% from the same period last year on the fourth week of last month (December 21-27). It broke the record for the third consecutive week this year. Even compared to the first week of September last year (-25%), which is the second epidemic of Corona 19, the reduction in sales is more than double. In particular, the Seoul area suffered a severe blow, dropping 61% from the same period last year.

Major small business organizations are voicing for support for the damage caused by the end of the year due to strengthened quarantine measures. The third disaster subsidy of KRW 9.3 trillion is not enough to rescue them.

There was also a realistic judgment that the effect of the disaster subsidy would not last for more than three months. In fact, after the first disaster subsidies were paid in May last year, retail sales in May and June recorded positive, but fell back to negative in July, the third month. The effect of the second subsidy in September last year, which was selectively applied to the victims, is shorter. Retail sales were positive in September, but turned negative immediately next month.

There is also uncertainty here. Corona 19 vaccination is expected to begin in earnest only in the second quarter, and a variant virus with strong transmission power has also appeared.

The opposition, the people’s strength, is wary, saying that if the 4th disaster subsidies are paid just before the re-election in April, it could be used for elections. Ho-young Joo said, “There are some things that have not yet been paid because the third disaster subsidy has been reflected in the current budget, but is it for the April election to claim the entire national disaster subsidy?” Pointed out.

The problem is finance. The government decided to draw 4,800 billion won out of 7 trillion won for the purpose of this year in order to finance the third disaster support fund. 68% of the’national emergency funds’ prepared to respond to disasters such as typhoons and earthquakes are poured out at once. If the current corona spreading trend is not caught, or if an unexpected situation such as the 4th recurrence occurs, it is impossible to respond with the remaining purpose reserve. In the end, it means that supplementation is inevitable.

Professor Kim So-young of the Department of Economics at Seoul National University said, “Even though the additional corona epidemic is sufficiently predicted, it is because the budget was organized without taking this into account. As the financial burden of the government is increasing, we are reducing other budgets before discussing Efforts must be preceded.”

The Ministry of Strategy and Finance, the main ministry, is cautious. This is because it has already organized four supplementary administrations in 59 years since 1961 to respond to Corona 19 last year. An official in the Ministry of Information, who requested anonymity, said, “It has not been officially discussed or communicated yet.”

It is pointed out that it is necessary to establish a certain standard as it seems that the discussion on the payment of such disaster subsidies will continue in the politics in the future. Park Young-beom, professor of economics at Hansung University, said, “The German Prime Minister Merkel made a promise to’pay off a huge debt from 2023′ while releasing money to overcome Corona 19.’ We need to have a reliable fiscal plan on how to normalize in the future.”

Sejong = Reporter Son Hae-yong [email protected]